The field of the disclosure relates generally to altering power consuming functions on an electrical device, and more specifically to a system and method for altering power consuming functions on an electrical device during periods of peak energy demand.
In consideration of increasing fuel prices and high rates of energy usage at certain parts of the day (e.g., peak demand periods), electric utilities may be required to buy high cost energy (e.g., peaking energy) in order to supply their customers during these periods. Accordingly, electric utilities charge their customers higher rates during peak demand periods. By reducing energy usage during peak demand periods, utilities can achieve commercially significant cost savings by reducing their investment in peaking energy and overall generation.
More recently, various types of dynamic pricing, such as real-time energy pricing, have been introduced to the energy consumer. Dynamic pricing provides some market transparency that exposes consumers to demand-based variations in energy costs. Accordingly, consumers are encouraged to reduce their use of energy during periods of high demand, lowering their electric utility bill. The prevalence of dynamic pricing is growing as a means to mitigate power shortages. In this context, dynamic pricing is referred to as a “demand response”. Utilities and their regulators have implemented demand response as programs, which provide incentives to reduce electrical demand during peak energy usage, when brownouts and power shortages are most likely. In some cases, these incentives are contingent upon a consumer maintaining energy usage below a threshold during certain hours or metering intervals. If the consumer fails to operate under this threshold, the incentives may be lost, penalties may be imposed, or both.